Ratings agency, Moody’s says Zambia’s rising high debt burden constrains its credit profile.
Moody’s analyst, Daniela Re Fraschini sees the country’s debt exceeding 75 percent of gross domestic product this year, from 62 percent in 2017.
Last year, Zambia’s external debt leapt to $10.05 billion from $8.74 billion in 2017.
The Zambian government has continued to spend on building programs and has failed to persuade the International Monetary Fund to sign off on a package to boost its budget.
IMF and ratings companies had warned that the country’s debt burden is becoming excessive.
Moody’s cut Zambia’s credit rating to Caa1, seven levels below investment grade, in July, noting that the country’s fiscal policy credibility is limited and debt affordability, weak, compared to peers on the continent.
It could lower the assessment further, if credit pressures constraining the rating were to worsen.
Zambia is Africa’s second-biggest copper producer.